Broadcom CEO Hock Tan said the company expects its AI chip sales to top $100 billion next year, a statement that sent AVGO shares higher. “We have line of sight” to reach this milestone in 2027, he said during a conference call with analysts on Wednesday. “We have also secured the supply chain required to achieve this.”
The company projects that AI chip revenue will be $10.7 billion in the current quarter, so reaching an annual pace of $100 billion would be a major jump. Broadcom reported $20 billion in AI sales in 2025. Broadcom shares rose as much as 4.2% on Thursday, and are up 2.5% at the time of writing.
Hock Tan isn’t the first head of a major AI player to say AI chip sales are ready to skyrocket. Indeed, NVIDIA (NVDA) CEO Jensen Huang insists that software stocks are ready to pop, advising that Wall Street has the wrong idea on the industry presently. Huang argues that agentic AI will not replace current enterprise software products and services; it will use them on people’s behalf. The AI sector was largely anticipated to boom even higher in 2026, but
In a sector largely dominated by Nvidia (NVDA), Broadcom AVGO has become one of the AI-stock favorites on Wall Street. Its latest earnings report was highly anticipated and expected to deliver solid results. However, AVGO stock was little moved after the results just narrowly beat analyst estimates. Adjusted earnings per share (EPS) came in at $2.05 (compared to analyst estimates of $2.03), while adjusted net revenue came in at $19.31 billion (compared to analyst estimates of $19.26 billion).
Furthermore, Broadcom also delivered a better-than-estimated quarterly outlook on Wednesday and announced a stock buyback plan worth as much as $10 billion. Revenue will be about $22 billion in the fiscal second quarter, which ends May 3, the company said. Analysts had predicted $20.5 billion on average, though some projections topped $22 billion,
Compared to Nvidia, Broadcom’s growth rates appear more modest, as Nvidia has been delivering significantly faster revenue expansion driven by surging demand for its AI GPUs. However, Broadcom’s growth is viewed as more diversified and potentially steadier, supported by its custom AI chips and networking business. Both AVGO and NVDA have buy ratings on Wall Street, but the gap of favortism between the two has drastically closed in during the last year.